Frequently Asked Questions About
 Changing Electric Providers

Q: If I switch, will the reliability of my electric service change?

A: No. No matter which Retail Electric Provider (REP) you choose, your electricity will continue to be delivered safely and reliably by the local wires company, a company still regulated by the Public Utility Commission (PUC).

Q:  Do all Texans have the power to choose their electric provider?

A:  No. City-owned utilities and member-owned electric cooperatives have the option of giving their customers a choice of providers, or keeping things the way they are today

Q:  What does Texas electric choice mean to me?

A:  It means you have the power to choose your electricity service provider. It's referred to as deregulation. And it’s a result of Texas Senate Bill 7, which enables the State of Texas to restructure its electric utility industry.

Q:  How does electric choice affect my electric rates?

A:  On January 1, 2002, rates for most customers were lowered. This rate is known as the "price to beat.” The "price to beat" is in effect from January 1, 2002, until December 31, 2006. The Public Utilities Commission of Texas (PUCT) has mandated that the affiliated Retail Electric Providers (REP) provide this rate to residential and small commercial customers with a peak demand of less than 1 megawatt (Usage over 1 MW typifies large commercial or industrial customers).

Q:  Will the situation in California happen in Texas?

A:  Since 1995, 47 new power plants have been built in Texas, representing one-fourth of all power plants being built in the nation. California has built only two power plants since 1995.

Texas also imports less than one percent of its power during peak demand, while California imports at least 20 percent. In addition, Texas power generators and REPs are able to negotiate long-term wholesale power purchases for the lowest price, while in California, spot purchases have left utilities and customers vulnerable to price spikes.

Texas has enacted strong customer protection measures during the transition to a competitive retail electric market. These measures will keep electric rates stable so you won't see your electric bill double or triple, like in California.

Q:  How does Cirro Energy reduce my electric bills?

A:  Deregulation allows REPs, like Cirro Energy and Champion Energy Services, to buy electricity wholesale from competitive providers and pass the savings along to customers.

Q:  If I switch, will my new electricity be as reliable as before?

A:  Yes. Since the transmission and distribution of your power is still provided by your current regulated utility, you get the same level of reliability. They will continue to maintain the poles and wires, regardless of what provider you select. The only thing that changes is your savings and customer service.

Q:  What happens if my Retail Electric Provider (REP) goes out of business?

A:  You will not be without power. You should receive a notice from your REP giving you time to select a new provider. However, if that does not happen, your service will be provided by the Provider of Last Resort (POLR) until you select a new provider.

Q:  Do I have to switch?

A:  No. But on January 1, 2002, you were switched to an REP that is affiliated with your current utility.

Q:  What do I do if my power goes out?

A:  Because your local regulated utility is still obligated by law to maintain your service, you can call them in the event of an outage.

Q:  If I switch, where will my electricity come from?

A:  Your current electric utility will continue to deliver your electricity. As such, your power will come from a regional power pool – a mixture of energy from traditional power plants and other sources like wind, water, sun and natural gas.

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